Shares Of Pinterest And Zoom Rally On First Day Of Trading

The share prices of technology companies Pinterest and Zoom rallied Thursday following their initial public offerings (IPOs).

Shares in Pinterest, the digital pin board, climbed 28% on its first day of trading as a public company. The company's IPO price was $19 a share and the stock began trading at $23.75, and finished the day at $24.40.

Pinterest's fully diluted market capitalization totaled over $16 billion at the close of trading Thursday. The closing share price put the company's value above its last private valuation of $12 billion, avoiding a disappointing IPO.

Zoom, a videoconferencing company, did even better in its IPO Thursday. Shares in the profitable company, which was last valued by private investors at $1 billion shot up 80% in early trading Thursday. The shares ended the day up more than 72%, closing at $62. The company's fully diluted market capitalization now exceeds $18 billion.

The demand for Zoom stock showed that investors are eager to back lesser-known enterprise software companies — particularly profitable ones — as they are to support high-profile apps geared toward consumers. Shares in PagerDuty, a smaller software start-up, soared 60% on its first day of trading last week. The next big IPO of the year is expected to be ride hailing juggernaut Uber, which is expected to go public in May.